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with explanation please $ 31,500 47,250 14,000 4,375 5,250 9,625 $112,000 Depreciation-Building Interest-Building mortgage Taxes-Building and land Gas (heating) expense Lighting expense Maintenance expenae Total

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$ 31,500 47,250 14,000 4,375 5,250 9,625 $112,000 Depreciation-Building Interest-Building mortgage Taxes-Building and land Gas (heating) expense Lighting expense Maintenance expenae Total occupancy cost The bullding has 7,000 square feet on each floor In prior perlods, the accounting manager merely divided the $112,000 occupancy cost by 14,000 square feet to find an average cost of $8 per square foot and then charged each department a bullding occupancy cost equal to this rate times the number of square feet that it occupled. Dlane Linder manages a first-floor department that occuples 1,000 square feet, and Juan Chiro manages a second-floor department that occuples 1,900 square feet of floor space. In discussing the departmental reports, the second-floor manager questions whether using the same rate per square foot for all departments makes sense because the first-floor space is more valuable. This manager also references a recent real estate study of average local rental costs for similar space that shows first-floor space worth $30 per square foot and second-floor space worth $10 per square foot (excluding costs for heating, lighting, and maintenance) 2. Allocate the depreciation, Interest, and taxes occupancy costs to the Linder and Chiro departments in proportion to the relative market values of the floor space. Allocate the heating, lighting, and maintenance costs to the Linder and Chiro departments in proportion to the square feet occupled (ignoring floor space market values). (Round cost answers to 2 declmal places. Round your Intermediate calculations to 2 decimal places.) Answer is complete but not entirely correct. Square Footage Total Rate Department Linder's Department Chiro's Department $9,320 1,000 $9.33 6.68 12.673. 1,900 Next> of 5 4 Prev B 2

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